Global Markets:

  • Japan GDP (y/y) [P]: 5.9%, Expected: 4.2%, Previous: 0.3% (Revised from 0.7%)
  • Japan GDP Price Index (y/y) [P]: 0.0%, Expected: -0.1%, Previous: -0.3%
  • New Zealand Business NZ PMI (APR): 55.2, Previous: 58.4
  • Australia New Motor Vehicle Sales (APR) (m/m): 0.0%, Previous: -0.3%
  • Australia RBA Foreign Exchange Transaction (AUD) (APR): 325M, Previous: 736M
  • Japan GDP Business Spending (QoQ) (1Q P) is at 4.9% vs. 1.4% Prior (Revised), 2.1% Survey
  • Japan GDP Consumer Spending (QoQ) (1Q P) is at 2.1% vs. 0.4% Prior, 2.1% Survey
  • New Zealand Finance Minster English projects net core debt at 26.4% of GDP in 2014-15
  • New Zealand Fin Min English forecasts GDP growth of 4% in fiscal year through 2015
  • BOJ Governor Kuroda says mid to long term Inflation expectations are rising
  • BOJ Governor Kuroda says prices to be on upward trend later this fiscal year
  • Japan’s Economy Minister Amari says wage growth is spreading
  • Japan’s Economy Minister Amari says economy is making steady progress towards beating deflation
  • As of 05:00 GMT, the Nikkei is down 1 % while the Shanghai Composite lost 0.80 %
  • Australia’s ASX is unchanged on the day & the Hang Seng gained 0.40 % on the day

FX Flows/Orders:

  • AUD – The barrier at 0.94 was cleared in the early European session yesterday, but momentum faded away quite quickly. Longer-term names were sellers and specs started to cover as we were heading into the NY session. Overnight, it was quiet with AUD/USD stuck in a 0.9360-0.9380 range. It’s worth to keep an eye on AUD/NZD as plenty of specs are long the pair and price action is starting to look ugly. Sizeable stops sub-1.0790.
  • CAD – Selling interest at 1.0920 increasing in USD/CAD, while bids seen towards 1.0850. Canadian Manufacturing Sales data will be released at 12:30 GMT and could finally bring some volatility in the pair.
  • EUR – Banks see good bids at 1.3680 in EUR/USD and buy orders above 1.3735 from systematic accounts. Model funds looking to sell a break of 1.3675; bids pre-1.3650 said to be large, though liquidity could get thin into the CPI release.
  • JPY – USD/JPY hit a low of 101.66 amid a weak Nikkei. Dealers see bids starting at 101.65 and increasing in size towards 101.40. System funds are looking to sell a 101.50 break and there are plenty of stops sub-101.40.

Upcoming Events:

  • 05:30 GMT – French GDP (0.2 % QoQ)
  • 06:00 GMT – German GDP (0.7 QoQ, 2.2 % YoY)
  • 07:15 GMT – Swiss PPI (0.2 % MoM, -0.5 % YoY)
  • 08:00 GMT – Italian GDP (0.2 % MoM, -0.1 % YoY)
  • 09:00 GMT – Euro Zone CPI (0.2 % MoM, 0.7 % YoY)
    09:00 GMT – Euro Zone GDP (0.4 % QoQ, 1.1 % YoY)
  • 12:30 GMT – Canada Manufacturing Sales (0.2 % MoM)
  • 12:30 GMT – US CPI (0.3 % YoY, 2.0 % YoY)
  • 12:30 GMT – US Initial Jobless Claims (319k)
  • 13:15 GMT – US Industrial Production (0.1 % MoM)
  • 14:00 GMT – US NAHB Housing Market Index (49)
  • 14:00 GMT – US Philadelphia Fed Manufacturing Index (14.0)